Define the return on invested capital as ratio of profits

Assignment Help Operation Management

Reference no: EM132222859

MySunshine Hotel is a chain with 8 identical hotels which operate 365 days a year. The chain invested $200M to purchase land for these hotels and $100M to build and furnish them. Each hotel has182 rooms and charges and average price of 164 per night. Each operating material cost for each hotel is $1M. On top of that, each hotel is staffed with 40 employees; each paid $50,000 a year on average. The number of hotel employees has a direct effect on hotel occupancy in the following way: Hotel occupancy rate=0.01 X Number of Employees

Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. What is the ROIC? (Please keep 4 decimal places, not in percentage)

Reference no: EM132222859

Questions Cloud

Terms of operating agreement can alter fiduciary duties : The second group will determine whether the terms of an operating agreement can alter these fiduciary duties.

Different between digital signature and digital certificate : What is the different between a digital signature and a digital certificate?

Chiemsee knee replacement clinic : The Chiemsee Knee Replacement Clinic (CKRC) is a sports clinic located at the northern edge of the German Alps.

What would be the target manpower : Consider the following tasks that must be assigned to four workers on conveyor-paced assembly line. What would be the target manpower?

Define the return on invested capital as ratio of profits : Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. What is the ROIC?

How much do you think social media played orea company : How much do you think social media played orea company into new image? Do you think social media has helped improve Oreo's global appeal?

Competitive advantage in supply chain : Name a successful company that has a competitive advantage in supply chain. How have they grown in the past 10 years? Where are they located at?

Thinking about producing new type of electric razor for men : Jim Sellers is thinking about producing a new type of electric razor for men. What is the value of the questionnaire's information? What is its efficiency?

Managed care and accountable care organization : Similarities and differences - between managed care and Accountable care organization

User Account

All Pages